Overview
In this article, we'll cover frequently asked questions about Direct Debit.
Q - What is Direct Debit?
Direct Debit allows you to collect payment directly from your customer's bank account once they've authorised the payment.
Instead of entering card details, the customer provides bank account details and approves the debit.
Q - How does Direct Debit work?
If Direct Debit is enabled:
The customer selects Direct Debit as their payment method
They enter their bank account details and provide authorisation
The payment is processed through Fergus Pay
Funds are deposited into your account according to your standard payout schedule.
Q - Who is Eligible for Direct Debit?
Direct Debit is available to registered businesses. Direct Debit may require additional business verification before it can be enabled. Depending on your region, Stripe may request extra business information to activate this payment method.
Q - When do I receive funds from a Direct Debit payment?
Direct Debit payments may take longer to process compared to card payments
Once the payment has successfully cleared, funds are paid out according to your standard Fergus Pay payout schedule.
Q - Can I pass the Direct Debit fee on to my customer?
In New Zealand and Australia, you can choose to either cover the Direct Debit Fee or pass it on to the customer. In the United Kingdom, you cannot pass the fee to your customer, and you must cover the processing fee.
Q- How do I enable or disable Direct Debit?
Direct Debit can be managed and enabled within your Fergus Pay settings, and also on your invoices.
You can control whether Direct Debit is available to your customers alongside other payment methods.
If enabled, customers will see Direct Debit as a payment option when paying an invoice.
Q - What are the Direct Debit processing fees and Transaction Limits?
Processing fees vary by region:
Region | Processing Fee |
Australia | 1% max $5 |
New Zealand | 1% max $5 |
United Kingdom | 1% max £4 |
Q - Can Direct Debit payments fail?
Yes, Direct Debit payments may fail if:
There are insufficient funds in the customer's account
The bank declines the transaction
The authorisation is cancelled
If a payment fails, the customer will need to use another available payment method.
Q - Does enabling Direct Debit affect existing invoices?
No. Enabling or disabling Direct Debit only applies to future payment requests. Existing invoices or previously issued payment links are not affected.
Thank you for taking the time to read our Article. If you have any questions, please get in touch via support@fergus.com